8 Ways to Optimize Your 3PL Relationship

Having a good relationship with 3PL providers is as important as any other relationship in business. A good logistics solution provider will be able to help you steer clear of the unwanted stress and confusion that usually comes with the shipment of products. A 3PL has every attribute necessary to be considered as a partner in the entire business process, and they should be treated with similar respect when it comes to business dealings. The blog tries to shed some light on some of the important ways to optimize your 3PL relationship with third-party logistics providers. 

Maintain and comprehend your contracts.

Contracts at any time can be a mix of technical jargon and can be quite a new term for either of the parties entering into the contract. So, it will be fitting for you and the 3PL you are entering into the contract to be clear on the terms mentioned in the contract. A clear understanding of the contract will help avoid misunderstandings at a future date. It will also ensure that both parties transact fairly. It can help with a successful long-term relationship, which will help the business function seamlessly. The language of the contract should be strictly formal, and it should set forth clauses and conditions that are actually prevailing in the current market scenario. Mutual acknowledgement of terms and conditions is one of the ways to optimize your 3PL relationship with the business owner.

2. Ensure that it is the right fit.

Choose a 3PL based on how they are experienced in dealing with your particular line of business and how they easily blend with the business objectives that you portray. Typically, 3PL providers are hired or chosen solely on the basis of their pricing lines.This can affect the vested interests of both parties who are entering into the contract. It will help you discuss plans and strategies that will be beneficial for both parties' expansion and growth. It will help in creating a long-term business commitment. 

3. Set clear expectations from the start

Setting out clear expectations for what you are planning with the logistics partner has to be defined efficiently to avoid unwanted discrepancies at a later date. This will help in resolving the disputes or confusions from the start. A technical layout consisting of the KPIs will help in catering to the specific needs of the business. This will help the 3PL to understand the exact requirements and plan strategies beneficial for the company. Good communication and rapport also help in keeping up the spirit of business and solving many problems that might arise down the road. 

4. Establish an escalation process

In the event a problem arises, it would be ideal to define a proper structure for escalation. This will help avoid ambiguity at such trying times and get in touch with the person whom the 3PL provider is supposed to connect with. The issues concerning the 3PL provider with your business can range from quality issues to delays in shipment, etc. So, when such an issue comes up, it would be good to have a proper escalation procedure. 

5. Stay Connected

As discussed in the introduction, 3PL providers can be considered an inherent part of your business process and a close partner. Therefore, all major decisions that affect the business organisation need to be discussed closely with the 3PL provider. Such close interactions can help the business not miss out on any relevant opportunities. When such major changes are productively communicated with the partner, it means that they are valued and their presence in the organisational change is considered important. It can strengthen the relationship between 3PLs and the client.

6. Be Flexible

Scalability and growth are components that are inevitable in both businesses. Therefore, being flexible in terms and conditions as and when the business grows is a necessity. So, both parties need to be prepared to accommodate changes.

7. Be open to new ideas

Innovations and streamlining of different perspectives can contribute greatly to overall business growth. As a business partner, 3PL will always be at the forefront of assisting you to grow beyond your current business stage.They will also have extensive knowledge and experience of the market and can come up with new-age notions of how to make logistics more efficient. The professional team at 3PL will also be able to plan out new provisions that can be used to enhance the business cycle. 

8. Keep What You Do Best In-House

The first step is to analyse your own business and understand which fields you are proficient in. Once this is done, then hire a 3PL provider for areas where you are not good. For example, if you are not good in logistics operations in Oman, hire 3PL companies in Oman which help you to ease your shipping operations . Outsource only what is needed. 

3PL providers are the backbone of the logistics department of any business.  Following these ways to optimize your 3PL relationship with the 3Pl providers will be a necessity for the seamless functioning of business. 

Sohar Shipping Service has been a renowned logistics company in Oman for the past 38 years. They have a clientele of global leaders who have been associating with Sohar for their logistics requirements. Sohar holds quality assurance and customer service to be of the utmost importance. Sohar has also been very keen on providing their customers with the latest trends and technologies.